Buy stock in king candy crush

By: Gogle Date: 10.07.2017

A mascot dressed as a character from the mobile game "Candy Crush Saga" walks the floor of the New York Stock Exchange during the IPO of Mobile game maker King Digital Entertainment Plc March 26, It posted strong Q1 results, beating revenue estimates, and CEO Riccardo Zacconi says the company is "pleased by the sustained popularity of our games. But t his morning, a handful of investment analysts have published negative notes on the company.

Candy Crush maker King Digital's stock is crumbling as analysts turn on it - Business Insider

Credit Suisse said "Candy Crush will continue to decay at a steep trajectory but further that 3 out of 5 [new game] launches will be a commercial failure. Founded in by Riccardo Zacconi and Melvyn Morris, it first really came into the public eye in , with the launch of Candy Crush Saga. A simple, free-to-play puzzler funded through in-app purchases, it went super-viral, and has netted hundreds of millions of players.

Despite this wild success, there have been financial — and legal — hurdles. A game mascot on the floor of the New York stock exchange on the day King launched its IPO in People questioned the wisdom of the IPO upon its initial announcement, given the unpredictable, hot-hit-wonder nature of mobile gaming. At the start of , "Games Guru" Tommy Palm left King Digital.

It was a major loss — Palm is "credited with helping to create the most popular mobile game on the planet, Candy Crush Saga," VentureBeat reported at the time. Palm went on to start his own mobile games company. Then in March, King was sued over allegations tht it denied "lives" to players that had been donated to them by friends, in in attempt to force people to buy new lives. The complaint asserts that King is "intentional[ly] profiteering at the expense of customers.

The same month, it was also sued for allegedly inflating user numbers ahead of its IPO the year before. Of course, legal battles don't detract from the sheer addictive popularity of Candy Crush. A Daily Mail story referred to it as "crack candy," interviewing women who said "it's taking over my life" and played for 8 hours a day. ABC put together a piece on "cautionary tales from people obsessed with Candy Crush," including one woman who ignored her daughter, and another who spent hundreds of dollars on the game.

Candy Crush Saga displayed on an iPhone.

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But flagship title Candy Crush's popularity has begun to wane, and with it, questions have been raised about the company's future. But this isn't why investors were excited. It's a dangerous game developing mobile app casual games. They can become multi-million-dollar businesses overnight, but there's little-to-no brand loyalty from consumers towards the development studios themselves.

Games are also unpredictable: They can become hits at any time, then fade away as quickly as they came. The ultra-simple Flappy Bird was one of the biggest viral sensations of It got so big that developer Dong Nguyen ultimately removed it from app stores, as he was unable to handle the pressure.

But when his studio.

buy stock in king candy crush

GEARS released its second title, Swing Copters , later that year, it failed to get the same traction. Another example is Mind Candy. It's the studio responsible for the web-based mega-hit Moshi Monsters.

But it has also seen massive losses over the past few years, as it has failed to capitalise on its success and diversify its portfolio. But it's "been a tough time in the last couple of years There have been lots of sleepless nights. Analysts — and investors — thought that King Digital had managed to sidestep this trap. Its new title, Candy Crush Soda Saga, was doing extremely well, along with its broad stable of other titles — including Bubble Witch Saga 2, Farm Heroes Saga, Pet Rescue Saga, and Diamond Digger Saga.

At the time, Deutsche Bank said in a research note that the company "has come a long way towards proving it can bring more hits to market.

buy stock in king candy crush

King Digital's Q1 results were relatively strong. King CEO Riccardo Zacconi said that "first quarter results demonstrate the continued strength of our franchises, with Candy Crush Saga, Candy Crush Soda Saga and Farm Heroes Saga remaining top 10 grossing games in the Apple App Store and Google Play Store in the U.

We are pleased by the sustained popularity of our games which is also reflected in our second consecutive quarter of company-high network reach metrics and we look forward to leveraging the extraordinary power of our massive player base in launching new innovative games in and beyond.

Deutsche Bank now says King "needs another hit," and that while Candy Crush Soda Saga "[came] on strong, it has "likely peaked already.

Without clear success from upcoming titles, it appears most likely revenue and margins will decline going forward. A research note from Pacific Crest says that "King is in need of a steady new schedule of new titles to grow, which is a much less profitable model than launching a few longer-performing, highly profitable games. We are not sure about the non-Candy Crush growth opportunity. Candy Crush has carried KING since its release in , and we think the story for growth after Candy is still uncertain.

Mobile game developers initially rely on a key franchise or genre, and diversification has been a rare occurrence. We are not sure KING is going to buck the trend. It has plans to launch new games, but the probability that any one will be a big contributor is relatively small. Credit Suisse, meanwhile, warns "not only that Candy Crush will continue to decay at a steep trajectory but further that 3 out of 5 launches will be a commercial failure.

The mobile gaming industry is notoriously volatile, and the era of Candy Crush Saga is drawing to a close. With no guarantee that King Digital will ever be able to replicate its success again, some analysts fear the company's future is looking dimmer than its past.

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KING Stock Quote - King Digital Entertainment Plc - Bloomberg Markets

Please go to Windows Updates and install the latest version. Trending Tech Finance Politics Strategy Lifestyle Sports Video All. You have successfully emailed the post. Analysts turn against Candy Crush maker King Digital: May 15, , 2: King has been beset with difficulties Despite this wild success, there have been financial — and legal — hurdles. Reuters People questioned the wisdom of the IPO upon its initial announcement, given the unpredictable, hot-hit-wonder nature of mobile gaming. Earlier this year, things were looking up Candy Crush Saga displayed on an iPhone.

Analysts praised King — then turned on it At the time, Deutsche Bank said in a research note that the company "has come a long way towards proving it can bring more hits to market. Liam Neeson transformed what could have been an ordinary mobile game ad into a Super Bowl great.

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buy stock in king candy crush

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